The Pakistan Stock Exchange (PSX) benchmark index, the KSE-100, fell more than 3,000 points in early trade on Tuesday, marking a second consecutive day of declines.
The sharp sell-off coincided with a nearly 3% rise in global oil prices, intensifying pressure on emerging market equities sensitive to energy cost inflation.
The downturn follows a severe correction earlier in the week, when the KSE-100 plummeted 6,400 points to hover around 179,792.
The downturn follows a severe correction earlier in the week, when the KSE-100 plummeted 6,400 points to hover around 179,792.
That initial crash was triggered by the launch of US military airstrikes against Iran, which sparked fears of broader regional conflict and supply chain disruptions.
Investors remain cautious as geopolitical tensions continue to weigh on sentiment across Asian markets.
Rising Brent crude prices are exacerbating concerns about import bills and current account deficits in Pakistan, where energy imports constitute a significant portion of foreign exchange outflows.